# How to categorize insurance claim payout / proceeds

**URL:** <https://community.stessa.com/t/how-to-categorize-insurance-claim-payout-proceeds/609>\
**Category:** Setup & Support\
**Created:** [February 9, 2020, 2:59pm UTC](https://community.stessa.com/t/how-to-categorize-insurance-claim-payout-proceeds/609 "2020-02-09T14:59:54Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![heptigproperty](https://avatars.discourse-cdn.com/v4/letter/h/6de8d8/32.png) [@heptigproperty](https://community.stessa.com/u/heptigproperty)\
**Post date:** [February 9, 2020, 2:59pm UTC](https://community.stessa.com/t/how-to-categorize-insurance-claim-payout-proceeds/609/1 "2020-02-09T14:59:54Z")

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I’m try’ing to figure out how to categorize an insurance claim payout. I have both sides of the transaction, the insurance check and the cost of the work.

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**Author:** ![devin](https://yyz2.discourse-cdn.com/flex032/user_avatar/community.stessa.com/devin/32/8_2.png) [@devin](https://community.stessa.com/u/devin)\
**Post date:** [February 18, 2020, 10:13pm UTC](https://community.stessa.com/t/how-to-categorize-insurance-claim-payout-proceeds/609/2 "2020-02-18T22:13:10Z")

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@heptigproperty For tracking purposes only (not tax reporting), you can categorize the insurance funds you received as “Income \> Insurance Proceeds” (new category) and the actual costs of the work as “R&M” or “Capital Expenses.”

Note that we _strongly_ recommend consulting with a CPA to figure out what’s reportable, deductible, etc. in this situation. The proper tax treatment for insurance payouts and the associated repair work is highly fact-specific.